What is national income?
Explain National Income of India:
The national income refers to the sum of the market value of all commodities and services produced in a country in the middle of a year. In which the reduction is reduced and by adding foreign profits.
At present, the Central Statistical Organization (CSO) of the Government of India calculates the national income of India.
Method of measuring of national income
“Explain National Income of India” National income is the net national product estimated at the instrument cost. Simon Kuznets, the creator of National Income Accounting. They have presented three methods of national income measurement, which are as follows.
Kuznets has defined this method by the name of the commodity service method. Under this method, the net value of the last item and services produced in a year is known in the country. And its yoga is called Final Product Total.
This method is also called consumption savings method. According to this method, the total income is either spent on consumption. Or on savings, so national income is the sum of total consumption and total savings. By this method, calculation of income is necessary for the data related to the income of the consumers and their savings.
Since this type of correct figure is not easily available, this method is used normally. In a country like India, the combination of production method and income method is used for calculating national income.